The Verge reckons that “multiple sources familiar with Redmond's plans” have revealed that Microsoft is indeed intent on launching two versions of the Xbox 720.

One is the fully-fledged meat and two veg console powerhouse that you’d expect while the other is a cheaper unit that is designed as a living-room access point for the wider casual market into the Xbox world.

It will be based on Windows 8 and won’t run large-scale triple-A titles but will instead focus on downloadable content. From a broader perspective the new box is yet another example of Microsoft attempting to make its new software environments easily scalable and easily embedded into a broad range of devices.

More speculative rumouring adds that “the company could opt to combine its core system for the next Xbox with a phone stack to deliver a phone capable of running a full version of Microsoft's Xbox Live services”.

Both machines will apparently be revealed in 2013 and arrive before Christmas next year.

Talk of a twin-SKU Xbox 720 strategy has been around for over a year, with November 2011 bringing word of a disc-less digital-only console. This was backed up in March of this year when MCV revealed that Microsoft is hatching a disc-less strategy of sorts for Xbox 720.

MCV is the leading trade news and community site for all professionals working within the UK and international video games market. It reaches everyone from store manager to CEO, covering the entire industry. MCV is published by NewBay Media, which specialises in entertainment, leisure and technology markets.